McDonald’s profit rises despite costs

Strong breakfast sales in the U.S. and a weak dollar overseas proved a potent combination for McDonald’s Corp. in the third quarter, giving the fast-food chain a 27% jump in profit despite rising costs.

The Oak Brook, Ill.-based company reported earnings that were in keeping with preliminary results released last week, posting $1.07 billion in net income. Executives said they hoped to keep the momentum going with more new products, hinting that specialty coffees may be coming soon on the heels of its success with premium roast coffee.

Net income was 89 cents a share, up from $843.3 million, or 68 cents, last year. Aside from an after-tax gain of 6 cents a share from the sale of its Boston Market franchise, McDonald’s earnings were 83 cents, matching the expectations of analysts surveyed by Thomson Financial.

Revenue was $5.9 billion, up from $5.5 billion a year earlier.

McDonald’s shares dropped 37 cents to $56.35.